What is a mortgage lien?

11 Oct What is a mortgage lien?

A mortgage lien is a pledge of property by its owner to secure the repayment of a debt. It is a voluntary lien created by the debtor; it covers only the specific property that its owner elects to pledge. If the debt secured by the mortgage lien is not repaid, the creditor can foreclose on the property. If the sell of the property does not result in enough money to pay the debt, some states allow the creditor to petition the court for a judgment lien for the balance due.

Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.